After a tumultuous year upended the lives of countless Americans, a new study finds that the pandemic experience is changing what matters most to retirees.
Edward Jones’ and Age Wave’s “The Four Pillars of the New Retirement: What a Difference a Year Makes” (a follow-up to their previous study), reveals the importance of purpose and contribution post-work, and what participants now say are the most critical aspects of comprehensive retirement planning.
Greater optimism, purpose
According to the report, despite the disproportionate health risk of the Covid-19 virus on retirees, they reported greater optimism than others:
- 76% of Americans credit the pandemic with helping them “refocus on what’s most important in life”
- 92% of retirees now agree that purpose is key to a successful retirement
- When compared to younger Americans, retirees are more likely to say that having a sense of purpose in life is important to achieving optimal wellbeing ( (69% vs. 55% of all other Americans)
- 61% of surveyed retirees indicated that the pandemic has given them “more appreciation for what makes life meaningful” (vs. only 46% of all other Americans)
- Over half of retirees (53%) say that they now have “greater empathy and compassion for people who are struggling in ways that they are not”.
“The past year disrupted life as we knew it, yet, today, we are encouraged to see that Americans across five generations are taking steps to reset, reprioritize and reconsider their purpose and their retirement plans,” Ken Cella, Edward Jones Client Services Group Principal, said in a statement.
Channeling purpose into greater good
This new study noted that there may be “an untapped wellspring of retirees interested in being a force for social good.” It found that an impressive 86% of all adults and 89% of retirees now believe “there should be more ways for retirees to put their talents and knowledge to use for the benefit of their communities and society.”
Retirees now say they would ideally like to volunteer 3.3 hours per week which is almost four times the rate of recent years. Edward Jones and Age Wave estimates that this could translate to retirees contributing 238 billion hours of volunteer time over the next two decades, equal to a potential value of $6.8 trillion of social contribution.
“While every American has been challenged by the disruption of the last year, we have also seen extraordinary amounts of gratitude and resilience especially from retirees,” added Ken Dychtwald, Ph.D., psychologist/gerontologist, and founder and CEO of Age Wave.
“Research has shown that having a sense of purpose can actually reduce the risk of cognitive decline, cardiovascular disease and depression, so finding meaning in one’s life is essential to a long, healthy and potentially fulfilling retirement.”
Lynn Brackpool Giles is a contributing editor to 401(k) Specialist. Giles is a former Managing Director of Communications and Consumer Services for the Financial Planning Association (FPA), where she oversaw all corporate, legislative, and consumer communications. In her current journalistic practice, she is a frequent contributor to numerous financial services industry publications.
